Igo Limited · ASX:IGO
Igo — Independence Group NL — Investor Presentation (February 2011)
52 slides from Igo's investor presentation, Feb 8, 2011
Slide 1: Independence Group Investor Update
For personal use only INDEPENDENCE GROUP GROWING A GREAT AUSTRALIAN MINING COMPANY BY MINERAL DISCOVERIES AND MINE DEVELOPMENT INVESTOR UPDATE February 2011 Chris Bonwick – Managing Director 1
Slide 2: Disclaimer
DISCLAIMER For personal use only Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward‐looking statements. All statement, other tha
Slide 3: Independence Overview - Corporate
INDEPENDENCE OVERVIEW ‐ CORPORATE For personal use only Tight share structure, cashed up and no debt Capital Structure: ASX 200 Code: IGO 138.8M shares and 0.8M unlisted options Market Cap. (27/01/11): A$1007M Daily turnover (6 month average) – 0.52M Substantial shareholders: JF Capital 10.2% (as at
Slide 4: Independence Overview - Assets
INDEPENDENCE OVERVIEW ‐ ASSETS For personal use only Multiple growth opportunities LONG NICKEL Jul‐Dec 2010 Cash Costs: MINE without royalty A$3.69/lb Ni with royalty A$4.29/lb Ni 2009/10 Revenue: A$10.42/lb Ni Jun 10 Resources: 91,500t Ni @ 5.4% Ni Production Jun 10 Reserves: 53,400t Ni @ 4.1% Ni
Slide 5: Independence History and Share Price
INDEPENDENCE HISTORY AND SHARE PRICE For personal use only Five ore bodies discovered to date Monthly Average Share Price to 25.01.11 5
Slide 6: Long Nickel Mine
LONG NICKEL MINE For personal use only IGO’S CURRENT CASH PRODUCING ASSET 2002 Purchase price = A$15M IGO Profit to date = A$286M Australia’s lowest cost nickel sulphide mine 1979‐1999 WMC Production: 203,184t Ni 2002‐2010 IGO Production: 69,220t Ni 6
Slide 7: Long Nickel Mine (IGO 100%)
LONG NICKEL MINE (IGO 100%) For personal use only Moran, McLeay and Long nickel ore bodies yet to be closed off HISTORY • IGO Starting Reserve = 26,800 Ni t • IGO Production to date = 69,220 Ni t • June 2010 Resource = 91,500 Ni t • June 2010 Reserves = 53,400 Ni t GOALS • Sustainable 9,000t Ni pa i
Slide 8: Production Forecast and Hedging
PRODUCTION FORECAST AND HEDGING For personal use only History of exceeding production guidance 2009/10 2009/10 Guidance Actual • Production 8,000‐8,400 Ni t 8,615 Ni t • Grade 4.0% Ni 4.25% Ni • Cash Costs (payable) ‐ with royalty A$4.20‐4.40/lb Ni A$4.44/lb Ni ‐ without royalty A$3.90‐4.10/lb Ni A$
Slide 9: Quarterly Cash Costs and Revenue
QUARTERLY CASH COSTS AND REVENUE For personal use only High operating margins and consistent low cash costs over 6 years Revenue A$/lb Ni (includes hedging) Payable Cash Costs A$/lb Ni 9
Slide 10: Mine Geophysics - TEM Equipment
MINE GEOPHYSICS ‐ TEM EQUIPMENT For personal use only Innovative research and development High powered TEM Underground transmitter Down hole TEM **Exclusive to IGO** surveying • 10 x more powerful than current systems. • More accurate drill • Doubles search radius Down hole TEM probe targeting, redu
Slide 11: Long Mine Nickel Deposits and Targets
LONG MINE NICKEL DEPOSITS AND TARGETS LONGITUDINAL PROJECTION For personal use only Largest Reserve since IGO reopened the mine (mine life extended to at least 2016) 11
Slide 12: Moran Nickel Deposit
MORAN NICKEL DEPOSIT Moran remains open to the south For personal use only 12
Slide 13: Moran South Cross-Section
MORAN SOUTH CROSS‐SECTION For personal use only Moran remains open to the south 13
Slide 14: Moran Deposit
MORAN DEPOSIT HIGH‐GRADE MASSIVE NICKEL SULPHIDES For personal use only 14
Slide 15: Long Mine Development Update
LONG MINE DEVELOPMENT UPDATE For personal use only Potential for Moran, McLeay and Long ore body extensions 15
Slide 16: Long North
LONG NORTH For personal use only Long ore body remain open to the north 16
Slide 17: Long Mine Complex Production / Ore Reserve Comparison
LONG MINE COMPLEX PRODUCTION / ORE RESERVE COMPARISON For personal use only Consistently mining more nickel than Reserve estimate Oct 2002 – Jun 2010 PRODUCTION SUMMARY Initial Ore Reserve Estimate: 40,373 Ni t Mined from Ore Reserve: 52,665 Ni t (+30%) Mined outside Ore Reserve: 11,444 Ni t (+28%)
Slide 18: Long Mine Fly Through
LONG MINE FLY THROUGH For personal use only 18
Slide 19: Tropicana JV (IGO 30%)
TROPICANA JV (IGO 30%) IGO’S SECOND POTENTIAL CASH GENERATOR For personal use only A New Australian Gold Province AngloGold Ashanti – 70% (Manager) Tropicana JV “New Gold Province under sand” 1000kms 19
Slide 20: Tropicana JV Tenements
TROPICANA JV TENEMENTS For personal use only JV tenure – 396km strike length & 16,000 km 2 area (granted & application ML’s & EL’s) 20
Slide 21: Tropicana JV Significant Discoveries to Date
TROPICANA JV SIGNIFICANT DISCOVERIES TO DATE For personal use only Numerous gold anomalies and potential for other gold discoveries 21
Slide 22: Tropicana JV Proposed Gold Mine
TROPICANA JV PROPOSED GOLD MINE For personal use only Aerial View of Proposed Open Cuts and Mine Infrastructure 22
Slide 23: Tropicana JV Bankable Feasibility Study
TROPICANA JV BANKABLE FEASIBILITY STUDY OUTCOME (100% PROJECT) For personal use only BFS Open Pit Reserves: Tropicana, Havana, Havana South 48Mt @ 2.2 g/t Au – 3.4Moz* (*$US880/oz Au, A$1,100/oz Au, AUD : USD 0:80, A$106/bbl oil, 0.7 g/t Au fresh ore cut off) Mining Inventory: 59Mt @ 2.0 g/t Au for
Slide 24: Tropicana JV BFS Outcome
TROPICANA JV BFS OUTCOME (100% PROJECT) For personal use only Capital: Plant & Equipment A$590‐A$620M Real Working Capital A$100‐A$120M Real A$690‐A$740M Payback: 2.2 years (A$1,300/oz Au, US$85/bbl oil, AUD:USD 1:00) Road Construction: Commencing early June 2011 Quarter Anticipated First Gold: Dece
Slide 25: Tropicana JV BFS Reserve and Mining Inventory
TROPICANA JV BFS RESERVE AND MINING INVENTORY For personal use only 100% Project: Nov 2010 Open Pit Reserve: 48Mt @ 2.2g/t Au – 3.4Moz (A$1,100/oz) Nov 2010 Mining Inventory: 59Mt @ 2.0g/t Au – 3.8Moz (A$1,100/oz) 25
Slide 26: Tropicana JV New Boston Shaker Discovery
TROPICANA JV NEW BOSTON SHAKER DISCOVERY For personal use only Boston Shaker is not included in BFS Tropicana gold system still growing along‐strike and down‐dip. 26
Slide 27: Tropicana JV Underground Potential
TROPICANA JV UNDERGROUND POTENTIAL For personal use only High‐grade, true width in‐pit gold intercepts suggest underground potential 27
Slide 28: Tropicana JV Havana Deeps Intercepts
TROPICANA JV HAVANA DEEPS INTERCEPTS For personal use only Havana Deeps is not included in BFS Tropicana gold system still growing along‐strike and down‐dip. 28
Slide 29: Tropicana JV Havana Deeps Drill Intercepts
TROPICANA JV HAVANA DEEPS DRILL INTERCEPTS For personal use only Havana Deeps is not included in BFS Tropicana gold system still growing along‐strike and down‐dip. 29
Slide 30: Tropicana JV Havana Deeps Cross-Section
TROPICANA JV HAVANA DEEPS CROSS‐SECTION For personal use only Tropicana JV Havana Deeps Step Out Hole 30
Slide 31: Tropicana Fly Through
TROPICANA FLY THROUGH For personal use only 31
Slide 32: Independence Gold and Base Metal Exploration Projects
INDEPENDENCE GOLD AND BASE METAL EXPLORATION PROJECTS For personal use only High quality nickel, gold, copper‐lead‐zinc and tin exploration projects 32
Slide 33: Duketon JV - C2 Prospect
DUKETON JV – C2 PROSPECT DISSEMINATED NICKEL SULPHIDES (IGO earning 70%) For personal use only C2 Prospect cross‐section C2 Prospect disseminated NiS C2 Prospect stringer NiS 33
Slide 34: Duketon JV - Rosie Prospect
DUKETON JV – ROSIE PROSPECT MASSIVE NICKEL SULPHIDES (IGO earning 70%) For personal use only Rosie Prospect massive nickel sulphides assaying: 5.2m @ 9.1% Ni, 1.1% Cu, 0.2% Co, 7.1g/t PGE’s (2.2g/t Pt, 1.7g/t Pd, 1.8g/t Ru & 0.8g/t Rh) 34
Slide 35: Duketon JV - Rosie Prospect Longitudinal Projection
DUKETON JV ‐ ROSIE PROSPECT LONGITUDINAL PROJECTION (IGO earning 70%) For personal use only 35
Slide 36: Orrbacken Nickel Project - Sweden
ORRBACKEN NICKEL PROJECT ‐ SWEDEN (JV: IGO earning up to 73%) For personal use only Numerous concealed TEM anomalies NiS rich gabbro boulder 36
Slide 37: Holleton Gold Project (IGO 100%)
HOLLETON GOLD PROJECT (IGO 100%) For personal use only Large gold anomaly discovered under cover REGIONAL GEOLOGY GOLD GEOCHEMISTRY 37
Slide 38: Karlawinda Gold Project Location
KARLAWINDA GOLD PROJECT LOCATION (IGO 100%) For personal use only Large new gold system close to gas pipeline and existing infrastructure 38
Slide 39: Karlawinda - Francopan Prospect Cross-Section
KARLAWINDA ‐ FRANCOPAN PROSPECT CROSS‐SECTION For personal use only Very large gold system 39
Slide 40: Karlawinda Gold Project Bibra Prospect
KARLAWINDA GOLD PROJECT BIBRA PROSPECT (IGO 100%) For personal use only Potential heap leach gold operation 40
Slide 41: Karlawinda Bibra Prospect Cross-section
KARLAWINDA GOLD PROJECT BIBRA PROSPECT (IGO 100%) For personal use only Cross‐section B‐B’
Slide 42: Jeannie River Tin Project
JEANNIE RIVER TIN PROJECT (JV: IGO earning 70%) For personal use only Historic drilling failed to test magnetic targets identified by IGO
Slide 43: Project Generation - De Beers Database
PROJECT GENERATION DE BEERS DATABASE (IGO 100%) For personal use only No buy‐back or royalties on future mineral discoveries Long term exploration asset to find new Australian mineral camps. 293,000 geochemical samples collected. 2,278 samples reporting visible gold. 2,025 geophysical survey
Slide 44: De Beers Database Storage Warehouse
DE BEERS DATABASE STORAGE WAREHOUSE For personal use only Preparing geochemical samples for analysis 44
Slide 45: Example: Potential to Find New Mines
EXAMPLE: POTENTIAL TO FIND NEW MINES DE BEERS DATABASE (IGO 100%) For personal use only IGO 2009 gold analysis of De Beers samples collected before the discovery of the Plutonic Gold Mine (WA) 45
Slide 46: Birrindudu Tin Project
BIRRINDUDU TIN PROJECT NORTHERN TERRITORY (IGO 100%) For personal use only New Australian tin discovery Cassiterite rich heavy mineral concentrate 46
Slide 47: FY2010-11 Proposed Group Exploration, Development & Capital Budget
FY2010‐11 PROPOSED GROUP EXPLORATION, DEVELOPMENT & CAPITAL EQUIPMENT BUDGET For personal use only Capital equipment A$19.4M LONG NICKEL MINE Moran development A$13.5M Budget: A$39.6M Exploration A$6.7M Finalise Bankable Feasibility Study A$1.4M TROPICANA JV Budget: A$31.5M Mine capital development
Slide 48: Independence Corporate Goals
INDEPENDENCE CORPORATE GOALS For personal use only To improve shareholder returns by growing a great multi commodity Australian mining company Focus on: Low cash costs Mine longevity Innovative exploration Strong balance sheet 48
Slide 49: Independence Contact Details
INDEPENDENCE CONTACT DETAILS For personal use only Perth Office Managing Director – Chris Bonwick Ground Floor, Suite 1 183 Great Eastern Highway, Belmont, Western Australia Postal: PO Box 496, South Perth, Western Australia 6951 Telephone: +61 8 9479 1777 Facsimile: +61 8 9479 1877 Email: contact@i
Slide 50: Long Nickel Mine June 2010 Resources and Reserves
LONG NICKEL MINE JUNE 2010 RESOURCES AND RESERVES For personal use only RESOURCES MINING RESERVE Undiluted at 1% Ni Cut-off 1, 2 as at 30 June 2010 as at 30 June 2010 Tonnes Ni % Ni Tonnes Tonnes Ni % Ni Tonnes LONG Measured 26,000 5.6 1,500 LONG Proven 15,000 2.8 400 Indicated 215,000 4.8 10,300 Pr
Slide 51: Tropicana JV 2011 Resources and 2010 BFS Reserves
TROPICANA JV 2011 RESOURCES AND 2010 BFS RESERVES For personal use only Contract Open Cut Mining Contract Mining Costs January 2011 November 2010 Open Pit Resources Open Pit Reserves Tonnes Grade Contained Tonnes Grade Contained (Mt) (g/t) 1 Gold (Mt) (g/t) 3 Gold 2 4 (Moz) (Moz) Measured 25.8 2.2 1
Slide 52: Competent Person Statement
COMPETENT PERSON STATEMENT For personal use only Note: The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Christopher M Bonwick who is a full‐time employee of the Company and is a member of the Australasi
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